UBS leaks cash
February 9th, 2010
FT.com / Lex / Financial services & property - UBS.
UBS has announced its fourth quarter results:
[O]utflows from the group’s wealth management and Swiss banking operations nearly doubled to SFr33bn compared to the previous quarter, and SFr12bn leaked from its US wealth business.
Those leaks are having the desired result.
Richard:
I am not sure what the desired result is.
This money is leaving UBS to be deposited in other Swiss banks. some is going to the other large banks, but the major beneficiaries are the private banks in Geneva.
It is easy to see why; these institutions do not have large international commercial or investment banking operations and are therefore far less likely to be be put under pressure by foreign tax authorities.
So do not celebrate too fast. If anything, it means that it is even more difficult than before for foreign tax authorities put their hands on these funds.
TGB